Security on Crypto Exchanges

So finally all the hype and tweets have gotten to you and you’ve made up your mind to buy some Cryptocurrencies.

We will not get into the ins and outs of what a cryptocurrency is. In this article, we will address the other elephant in the room which is the security aspect of Cryptocurrencies. The following is an informative and interesting breakdown of everything you would want to know about Crypto Exchanges and security.

  • Crypto exchanges

A Cryptocurrency exchange is an online platform that allows users to trade coins. Previously all exchanges would act as the middlemen between the token buyer and seller that is until the development of purely decentralized exchanges.

There are countless past successful hacks with the most famous one being the Mt.Gox hack which left thousands of users without a penny.

Before picking a crypto platform, you need to be sure that it is safe both for you (your details) and for your money.

  • Why is Security important to Digital Currency exchanges?
  1. Crypto exchanges store a massive amount of valuable personally identifiable information. From names to address government identification details, taxpayer identification number, and a lot more.
  2. Exchanges handle a lot of cash or coin deposits and withdrawals.
  • Security status in Cryptocurrency exchanges

According to the sqreen analysis below which involved 140 cryptocurrency exchanges. The following is an overview of how different Crypto Exchanges are handling the basic security issues that should be implemented.

Security Best Practice Percentage
1. DDoS protection 80.58%
2. X-Frame-Options 65.47%
3. Strict-Trnsport-Security 39.57%
4. X-Content-Type-Options 35.25%
5. X-XSS Protection 29.50%
6. Using Vulnerable libraries 25.90%
7. Don’t expose server information 20.14%
8. Application security protection 15.11%
9. Content security policy 2.16%
10.  Public-key pins 0.72%

Based on the information in the table above, most exchanges have vulnerabilities and should implement deeper security controls and protections.

Unfortunately, there is no correlation between transaction volume and security maturity. People continue to invest in most of these exchanges despite the numerous vulnerabilities.

  • Safest Crypto Exchanges.
  1. Coinbase

This is the world’s largest Bitcoin broker, that enables users to conveniently purchase Bitcoin, Litecoin, Ethereum, and other coins. It operates in more than 30 countries including the United States, UK, Australia, Canada, Singapore, and Europe (besides Germany).

They accept debit card payments, SEPA transfer, bank transfers, and more. They offer compensation for users are different pricing terms.

Some benefits of Coinbase include:

  • Available “Instant Buy” option available with a debit card
  • Convenient for beginners
  • High liquidity and buying limits
  1. Coinmama

 This exchange enables traders in almost all parts of the world to buy Ethereum, Litecoin, and other many other coins using a credit, SEPA transfer, and debit card. Their charging fees range between 4.9% and 5.9% depending on the volume per purchase.

You may receive compensation for using the platform and the exact pricing terms are provided on their website.

Some of the benefits of Coinmama include:

  • Available in almost all countries
  • Offers the highest available limits for buying Bitcoins using a credit card
  • Highly trusted and reliable
  1. Zeabit

Zeabit I an exchange platform that allows quick and secure at the best rates on the market. They accept a wide variety of cryptocurrencies,

It is very easy to get started on Zeabit, you follow three simple steps that will only take you a couple of minutes. Some of the benefits it offers include Secure storage (a vast majority of their digital assets are stored in secure offline storage), insurance cover, Extensive support, and a portfolio with varied features.

 

scroll to top